Many business development meetings set a goal of producing X million dollars of new revenue by year end. Then acquisition timing and the calendar quietly make that target almost impossible. Here is how to plan around it instead of being surprised by it.
The Acquisition Process Takes Time
In government contracting, the path from opportunity to award is deliberate and slow. A win recognized on paper does not become revenue until the work is funded and the team ramps. Between the two sits an acquisition cycle you do not control and a ramp period you have to plan for.
Do the Fiscal-Year Math
Three things determine what a new opportunity can actually contribute this year:
- Realistic acquisition timing, from solicitation to award.
- The number of months remaining in the fiscal year once the work begins.
- The ramp, since few contracts run at full volume on day one.
Validating the realism of your inputs, and factoring in the most likely costs and resulting profit, is an essential and often missed step in financial planning. It is the difference between a target and a plan.
Phase Revenue by Start Date and Type
Model each opportunity with its expected start and end dates and its contract type, whether time-and-materials, fixed price, or cost-plus, so revenue and its associated cost land when they will actually occur rather than all at once. The shape of the year matters as much as the total.
Plan the Two Questions Together
Ask not only whether you will win, but when the revenue lands and what it costs to deliver. Answering all three in one model is what turns a pipeline number into a plan you can defend, to your board, your lender, and yourself.
Phase your pipeline revenue to reality. Request a demo of pipeline timing and forecasting in Decerio.
